Kumho Asiana Chairman to Sell 3 Kumho Tire Plants in China

September 12, 2017 09:22l09 13, 2017 17:07

Park Sam-koo, chairman of Kumho Asiana Group, will submit a self-rescue plan for Kumho Tire that includes the sell-off of Chinese plants to the creditors by September 12. In addition, he will sell off a 4.4-percent stake in Daewoo Engineering & Construction worth 130 billion won while asking executives to return their pays as part of the restructuring measures.

An industry official familiar with the matter said on September 11, "Kumho Asiana will soon deliver to the creditors a high-intensity plan to increase liquidity by cutting cost through asset sales and cost savings. All options are on the table." Earlier on September 6, the creditors demanded to Mr. Park to come up with a self-rescue plan by the 12th after deciding to cancel the stock purchase agreement with China's Double Star.

Instead of selling the assets in China, Kumho Asiana will concentrate its overseas assets in Vietnam. The Chinese plants for sale are three locations. Industry observers said the company will be able to procure funds of up to 400 billion won through the asset sale.